Staying in Touch January 2025 Newsletter

Happy January & New Year!

January 2025 Wow! –  We extend our warm wishes to you and your family and we look forward to a bright new year.

In summary, for Ottawa in 2024: there were 13,526 sales (all housing types), an 11.8% increase from 2023. The 2024 average price was $697,067, increasing approximately 1.3% from 2023 and the median price was $630,000, increasing approximatley 1.6% from 2023. We are all interested to know how the market is going to react to the changing interest rates and new mortgage terms. Hopefully, more new properties on the market in January will spark greater interest. First time buyers have been trickling back into the market and more will likely follow after the most recent interest rate cuts.

I recommend to start your search sooner than later, spring usually has more choice but there is also more competition. We welcome the opportunity to speak with you, if and when you are about to emark on this journey and help you, a family member or friend make a plan. There are different factors to consider whether you are purchasing your first home, upgrading or if deciding to right size and may also have a house to sell. For first-time buyers, a reminder of new changes for mortgages came into effect Dec. 15th so now is a good time to get a mortgage pre-approval.

We look forward to supporting Forests Canada this year. For every client and family we assist, we will be making a donation on their behalf to help long-term forest health and resilience in Canada.

This month we’ve included:

• An Update on the Ottawa market and Mortgage information: Financing tips for First-time buyers, Upgraders & Downsizers
• Articles: 2025 Colour Trends & Refreshing Your Home, Thinking of Buying a New Build Home in 2025, Preventing the Unwanted House Guest: Mould
• Market news and community events to enjoy in our city, including the Rideau Canal (see status)

We thank you for your continuted trust and confidence in our team and services. Feel free to contact us with any questions, we would love to hear from you.

Joan, Victoria & Luc

Contact Us  

Follow us on:

   @JoanSmithRealEstateFamily         @JoanSmithRealEstateFamily        Mrs. Joan Smith       The Joan Smith Real Estate Family

Market Update

The Ottawa Real Estate Board reports 613 properties (residential & condominiums) sold in December 2024, approximately a 7.9% increase in homes sold when compared to December 2023. Home sales totaled 13,526 units for 2024, representing approximately a 11.8% increase from 2023. However, supply and affordability issues are still affecting the market. Hopefully with listing activity increasing, interest rate cuts and new mortgage changes will spur those buyers watching the market to now enter the market.  If you are considering selling your home, now is the time to get your home ready for market, understand its value and explore your housing options. Key is to understand your financing options and if you need to sell your present home in order to purchase.

The Ottawa Real Estate Board is now using the MLS^®Home Price Index (HPI) to track changes in the real estate market (this tool is used by Canadian Real Estate Association across Canada).  The overall MLS^® HPI composite benchmark price for Ottawa was $645,800 in December 2024, an increase of approximately 3.8% from December 2023. Benchmark price for single family home was $729,300, up 3.7% on a year-over-year basis when compared to December 2023. The benchmark price for a townhouse/row unit was $533,200, up 11.3% compared to a year earlier. The benchmark apartment price was $404,400 representing a 2.5% decrease from a year ago.

The average sale price for homes sold in December 2024 was $663,781 increasing 4.4% from December 2023. The year to date average price was $679,067, increasing by approximately 1.3% when compared to 2023. Keep in mind, these are averages so some homes experienced a larger gain and some less, it is key to look at what is happening in your neighborhood, surrounding neighborhoods and with comparable homes. (See Ottawa’s MLS® December Market Closes Year with Optimism, January 9, 2024)

For Kanata, unit sales in December 2024 (all housing types) were 63, translating to approximately a 23.5% increase when compared with December 2023. Year to date 2024, 1,309 unit sales in Kanata, representing a 7.2% increase from December 2023. For greater Stittsville, unit sales in December 2024 (all housing types) were 34 units, representing approximately a 21.4% increase from December 2023. Year to date 2024, 792 sales, representing a 22.6% increase from December 2023. In Kanata, the average sale price in December 2024 was $698,513 for all housing types, representing approximately a 1.0% increase when compared to December 2023. Year to date the average sale price in Kanata for 2024 was $714,665, approximately 1.2% higher than 2023. For greater Stittsville, the average sale price in December 2024 versus December 2023, decreased 1% to $732,346 for all housing types. Year to date the average sale price for 2024 in greater Stittsville was $771,492, approximately 0.6% down from 2023. (Source: Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report December 2024)

December residential inventory in Ottawa – 603 new properties (all housing types) on the market in December 2024, an increase of approximately 13.6% when compared to December 2023 and 3.5% above the five-year average for December. At the end of December, there were 3,216 homes for sale (all housing types), about a 58.7% increase when compared to the end of December 2023 and 90% higher when compared to the 5 year average for December.

At the end of December 2024, Ottawa’s inventory of homes (all housing types) was 5.2 months, up from 3.6 months at the end of December 2023 (this is the number of months it would take to sell current inventories at the current rate of sales activity). Keep in mind, each neighborhood will be different, so important to look at your present neighborhood and housing types as well as the neighborhoods you are interested in. Contact us if you would like an update on your neighborhood/a specific street or type of home.

Click here to read our Ottawa Market Update December 2024 – 50 Years of Change.

Source:  (See Ottawa’s MLS® December Market Closes Year with Optimism, January 9, 2024)

Latest Mortgage Information

Navigating the Canadian Real Estate Market in 2025: Financing Tips for First-Time Buyers, Upgraders, and Downsizers

The Canadian real estate market offers opportunities for buyers at various stages of life, whether you’re purchasing your first home, upgrading to a larger property, or downsizing to a more manageable space. Each scenario comes with its own set of financial considerations. This guide will help you understand the key factors to consider when looking at financing.

First Time Buyers

a) Saving for A Downpayment

• Minimum Requirement: In Canada, the minimum down payment is 5% for properties under $500,000. For properties between $500,000 and $999,999, it’s 5% on the first $500,000 and 10% on the remaining amount. Homes priced at $1 million or more require a 20% down payment.
• First-Time Home Buyer Incentive (FTHBI): This program allows first-time buyers to reduce their monthly mortgage payments without adding to their financial burden by providing 5% or 10% of the home’s purchase price.

b) Understanding Mortgage Options

• Fixed vs. Variable Rates: Fixed-rate mortgages offer stability with consistent payments, while variable rates can fluctuate with the market, potentially saving money if rates decrease.
• Mortgage Pre-Approval: Getting pre-approved for a mortgage helps first-time buyers understand their budget and shows sellers that they are serious.

c) Additional Costs

• Closing Costs: These include legal fees, land transfer taxes, and inspection fees, usually totaling 1.5% to 4% of the purchase price.
• Property Taxes and Home Insurance: Ongoing expenses that need to be factored into the monthly budget.

Buyers Moving Up

a) Evaluating your current home

• Equity Position: Assess the equity built up in your current home. This can serve as a significant down payment for your new property.
• Market Conditions: Understand whether it’s a buyer’s or seller’s market, which will influence your strategy in selling your current home and buying the next one.

b) Financing the new purchase

• Porting Your Mortgage: Many lenders allow you to transfer your existing mortgage to your new home, potentially avoiding penalties for breaking the mortgage early.
• Bridge Financing: If there’s a gap between the sale of your current home and the purchase of the new one, bridge financing can help cover the interim period, find out if you qualify and its cost.

To learn more about what financial considerations for those looking to buy their first home, upgrade or rightsize, continue reading the article here.

Feel free to contact me with your questions.

Reni McNeil
Mortgage Brokers Ottawa
Apply online: www.renimcneil.ca
renim@mortgagebrokersottawa.com
License: 11759

News & Updates

• • Delivery price stability: Learning from the past, preparing for the future, Tim Macklem, Bank of Canada, Dec. 16, 2024
  • Impact of mortgage rule changes on 2025, BNN Bloomberg, Dec. 16, 2024
  • While Toronto struggles to build housing, Edmonton lays foundation for new urban future, Financial Post, Dec. 17, 2024
  • Changes to Canada’s tax brackets, CPP contributions and more in 2025, MoneySense, The Canadian Press, Jan, 2, 2025
  • What Trudeau’s resignation will mean for the economy, Financial Post, Jan. 6, 2025
  • Seniors lead solo renter revolution, larger dwellings preferred, Real Estate Magazine, Jan. 6, 2025
  • Kanata North a shimmering jewel in Ottawa’s Business Crown, City of Ottawa, Jan. 7, 2005
  • Average asking rents decline to 17-month low across Canada, The Canadian Press, Jan. 9, 2025
  • National Capital Region’s unemployment rate falls for second straight month in December, Ottawa Business Journal, Jan. 10, 2025
  • Complete Your Vacant Unit Tax Declaration by March 20, 2025

In the Community

We look forward to supporting Forests Canada this year. For every client and family we assist we will be making a donation on their behalf to help long-term forest health and resilience in Canada. Canada is home to some of the Earth’s most diverse and thirving forests, help keep it that way.

Coldest Night of the Year – Feb. 22nd, 2025, is a winterrific family-friendly 2 or 5 km fundraising walk in support of local charities serving people experiencing hurt, hunger, and homelessness. The event is hosted by the Western Ottawa Community Resource Center which has been providing services that support health, safety and wellness in our communities in far west Ottawa since 1986.

Things to Do in January 2025

• Rideau Canal Skateway – Jan. 11 open
• City Drop-in Skating – Throughout January
• 613Flea – Jan. 11 & 25, Feb. 8th & more
• National Gallery of Canada – Free Thursday Nights, Jan 16 – March 27
• Trend Arlington Winter Carnival – Jan 18
• Ottawa ComicCon – Jan. 25-26
• Ottawa Home & Remodelling Show – Jan. 23-26
• Robert Plante Winter Market – Jan. 25-26
• Ottawa Winter JazzFest – Jan. 30 – Feb. 1

See more events:
Things to do in Ottawa this weekend & Ottawa Tourism 

City of Ottawa Winter Activities, March Break Camps

Buyer Resources

• Help Me Find a Home
• Agency Relationship
• Tools
• New Home Construction
• Relocation Services
• Tips and Insights
• Understanding Mortgages